Online sales tax to be added to defense authorization bill

This may be the last Christmas of online shopping without paying sales tax.

A proposed online sales tax has been offered as an amendment to the National Defense Authorization Act, much to the ire of opponents.

The Computer and Communications Industry Association, a group that opposes this move, says that an online sales tax will burden small businesses, “some of the most promising candidates for future economic growth.”

“This proposal, and other online sales tax collection proposals like it, would allow states to penalize the innovative e-commerce business model by targeting small online businesses as convenient sources (and collectors) of revenue,” said CCIA President and CEO Ed Black.

The Marketplace Fairness Act, and its House counterpart the Marketplace Equity Act, seek to clarify, and arguably overturn, a 1992 Supreme Court ruling that requires retailers to have a physical presence in a state in order to collect sales tax on goods.

“Severing the relationship between taxation and physical presence would be a fundamental transformation in how we consider taxes,” Black continued. “Such a significant step deserves more extensive consideration than attachment to the unrelated Defense Authorization bill.”

Still, a recent poll indicates that the majority of Americans support the idea, describing an online sales tax as “common sense”. They also feel that a tax for online purchases would encourage people to buy local and keep tax dollars in their community.

“Local retailers invest in their communities and play a significant role in the overall quality of life in the places we call home,” said Betsy Laird, senior vice president of global public policy for the International Council of Shopping Centers.

Collecting the tax across state lines however poses as a challenge for small businesses that sell their goods in multiple states.

“It is not the job of small businesses to collect taxes to provide tax revenue relief for state and local governments outside their jurisdiction,” Black said, suggesting that an online tax would protect existing businesses at the expense of consumers and growth.

Some Republicans are on board, with Wyoming Sen. Mike Enzi as “the most overlooked tax loophole.”

“We are optimistic that once the Marketplace Fairness Act is brought for a vote, it will have enough support to pass,” said Illinois Democratic Sen. Richard Durbin’s spokeswoman, Christina Mulka.

Both Sens. Durbin and Enzi have offered the bill as an amendment to the National Defense Authorization Act.

“Sen. Durbin is focused on working with his colleagues to try to get a vote on the bill before the end of this year, whether as a stand-alone bill or part of a larger piece of legislation,” Mulka said. “They are keeping all options on the table at this point.”

"If they’re going to come here illegally, apply for & receive assistance through a corrupted Government agency encouraging this lawless behavior, work under the table & send billions of dollars each year back to their families in Mexico, while bleeding local economies dry, protest in our streets waving their Mexican flags DEMANDING rights, while I have to press ’1′ for English, then they need to be shipped back to where they came from!" -Chad Miller

Just an open question to the community, but does anybody here think if the government receives a significant increase in tax revenues they are going to save it and use it to close the gap in deficit spending or pay down the debt? Or do you think they will just spend more with only Military cuts being the only defecit reduction? On that note, do you think they are just going to take that Military cuts and spend it somewhere else?

"What country can preserve its liberties if its rulers are not warned from time to time that their people preserve the spirit of resistance?" -Thomas Jefferson-

"Our rights come from our humanity and may not be legislated away -- not by a vote of Congress, not by the consensus of our neighbors, not even by agreement of all Americans but one." Judge Andrew P. Napolitano

"If they’re going to come here illegally, apply for & receive assistance through a corrupted Government agency encouraging this lawless behavior, work under the table & send billions of dollars each year back to their families in Mexico, while bleeding local economies dry, protest in our streets waving their Mexican flags DEMANDING rights, while I have to press ’1′ for English, then they need to be shipped back to where they came from!" -Chad Miller

I plan to do my part to "starve the beast" rather than participate. I should retire soon enough and stop "feeding the beast" altogether. My plan is to go "off grid" and pay little as possible (probably just property taxes, etc.). Why should we pay the government the funds they need to screw us with? We should make it extremely expensive for this new police state to operate. The door swings both ways ya know. They wanna play? Then lets play hardball.

When you're born you get a ticket to the freak show. When you're born in America , you get a front row seat. - George Carlin

HMMMMM ITS A CATCH 22. ALLOWING ONLINE SALES TO GO UNTAXED HURST LOCAL BUSSINESS. HOW EVER THE TAXES WILL JUST GOET WASTED ON SOME BS PROGRAM TO GIVE THOSE WHO WONT WORK MORE. ITS WEALTH RESDRISBUTION.

NOBODY LIKES TAXES BUT WE NEED THEM TO KEEP SOMETHINGS RUNNING. OVER THE LAST 10 YEARS THINK OF ALL THE SALES THAT HAVE GONE UNTAXED THAT WOULD HAVE IF THERE WERE NO INTERNET.

I DON TLIKE TAXES BUT THERE A NESSACARY EVIL IFYO WANT RAODS TO DRIVE ON AN POLICE AN FIRE AN STUFF LIKE THAT.

I understand why it can be good and all, but how would it work? Would you pay taxes for the state you are in or the state the company is in? If it's by company then the companies in a state with the lowest taxes thrives and the others not so much. If it's by which state you order from then who will be able to police it. I think that's the reason there was no online tax to begin with. What i think j427x was mentioning was the corparate tax... I think... But WalMart breaks the mold because they are such good capitalists it seems greusom, but that's why they are so good at what they do.

But back to my original concern... Would it be a flat online tax? That would make the most sense, but what if the flat tax is still better than the local state tax. That business wouldn't stay in the local economy anyways.

Would they just tax you to use the internet? It seems like it has been drawing business away from libraries for years. Who knows I am just curious.

"What country can preserve its liberties if its rulers are not warned from time to time that their people preserve the spirit of resistance?" -Thomas Jefferson-

"Our rights come from our humanity and may not be legislated away -- not by a vote of Congress, not by the consensus of our neighbors, not even by agreement of all Americans but one." Judge Andrew P. Napolitano